International Internet Announces Six Month Revenues Increased By Over 400%
BOCA RATON, Fla.--(BUSINESS WIRE)--Aug. 14, 2000--
Sales Increased 406% During the Six-Month Period Ended
June 30, 2000, as Compared to Same Period 1999
International Internet, Inc., (OTC:IINN), a leading online source for cigars and cigar accessories, today reported financial results for its second quarter ended June 30, 2000. For the three month period ended June 30, 2000, sales increased to $621,860 from $170,055 in 1999. Revenues were increased from $221,359 to $1,121,085 for the same six month period last year. The 1999 quarters were the first full quarters for the operations of Stogies, the Company's online distributor and retailer of brand name premium cigars. Sales increased 266% during the three month period ended June 30, 2000 and 406% during the six month period ended June 30, 2000, as compared to the previous year. Sales during the three months ended June 30, 2000 increased 25% from the three months ended March 31, 2000 and the Company expects Stogies' sales to continue to increase at this level.
The Company increased its working capital from $3,124,080 at December 31, 1999 to $13,094,453 at June 30, 2000. The major components of the increase in the amount of $9,970,373 includes increases in cash in the amount of $5,203,647, increases in marketable equity securities in the amount of $10,557,420 and less an increase in notes payable in the amount of $2,600,567 and an increase in deferred taxes payable in the amount of $3,605,400. The Company had $334,134 in cash flow used in operations during the six months ended June 30, 2000 as compared to $2,848,350 in cash provided by operations in the year earlier period. The year earlier period included proceeds from the sale of marketable securities in the amount of $3,210,644 as compared to the current period amount of $678,566. Selling, general and administrative expenses increased $527,458 (155%) to $866,862 in the six month period ended June 30, 2000 as compared to the same year earlier period.
On March 15, 2000, the Company entered into an agreement with Avenel Financial Group ("AFG") to structure and fund an investment in the Company in an amount of up to $11,250,000. The Company will issue and sell to investors restricted shares of the Company's common stock at a purchase price of $.375 per share. For each five shares of common stock purchased, the investor will also receive a warrant which shall entitle the owner to purchase one share of common stock at an exercise price of $1.50 per share. AFG will be paid a fee of 3% of the gross amount funded to the Company.
On April 3, 2000, the Company issued 11,000,000 shares of its common stock and 2,200,000 of its warrants, with an exercise price of $1.50 per share for net proceeds of $4,001,250.
Broadcast entered into an advertising agency agreement with Music Vision of New York in April 2000, to sell advertising on its network of music sites and expects revenues to commence during the next quarter. The Company has budgeted capital expenditures in the amount of $150,000, primarily for Broadcast, for the year 2000 and will utilize cash reserves to meet its requirements. As of June 30, 2000 the Company had completed acquisition of $101,463 in capital expenditures for cash.
"We are very pleased with our rate of growth and expansion in this, only our second full year of revenue generation. Between our move into our new warehousing and shipping facility and the evolution of The BroadcastWeb Network in recent months we anticipate continued revenue growth and an increase in shareholder value in both the near and long term," stated Herb Tabin, COO and Vice President of International Internet.
For additional information please see the 10Q filing at www.freeedgar.com.
About International Internet, Inc. :
International Internet, Inc. develops and operates Internet and direct retail marketing companies as well as venture funds focused on the Internet. The International Internet Group includes wholly owned subsidiaries StogiesOnline.com, Inc. (www.CigarCigar.com), International Internet E-tail Group, Inc. and International Internet Ventures I LLC and majority owned subsidiaries, Mr. Cigar, Inc., and TheBroadcastWeb.com, Inc. (www.thebroadcastweb.com). International Internet also holds minority interests in WowStores.com, Inc. (NQB:WOWS) (www.wowstores.com), GoldOnline International, Inc. (OTC:GDOL) (www.goldonline.com), Vertical Computer Systems (OTC:VCSY) (www.vcsy.com), flightserv.com (AMEX:FSW) (www.flightserv.com), American Computer Systems, Inc (www.acspc.com) and eStorefronts.net (OTC:LGST) (www.estorefronts.net).
Forward-looking statements in this release are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties and actual results could differ from those discussed. This material was prepared and disseminated by The Hawke Group, Inc. ("Hawke") for the Company discussed herein, based upon Company-supplied information or other sources believed to be reliable. Hawke does not guarantee the information for accuracy or to be all-inclusive. This material is information only and is not an offer or solicitation to buy or sell the securities. Hawke, its affiliates, and/or its officers, directors and employees may from time to time have a position in these securities. International Internet has retained The Hawke Group as a Financial Public Relations Consultant. For services rendered between Jan 1, 1999 and December 31, 1999, The Hawke Group has received 1,250,000 shares of International Internet free-trading common stock. On November 15, 1999 Scott Phillips, an employee of The Hawke Group, was issued 150,000 shares of restricted stock. Hawke will be paid $40,000 in cash for the period of 15 January, 2000 through August 14, 2000.
CONTACT:
Brokers:
The Hawke Group, Inc., Fort Lauderdale, Fla.
Scott Phillips, 954-564-7114, or Fax 954-564-9848 |
